04 Aug 2004 HA’ARETZ 1. IDF EXPANDING ACTION AGAINST KASSAM ROCKETS; TAKES UP POSITIONS NEAR JABALYA [REFUGEE] CAMP. Hamas sends taped threat: “Rain of rockets” on Sderot. OC Intelligence [Maj.-Gen. Aharon Zeevy Farkash] contradicts [ISA Director Avi] Dichter: “Terror barrel is bottomless.” Report: Security failures at dozens of strategic installations. [Labor MK Ephraim] Sneh: We found huts belonging to those in Israel illegally next to fence of military installation. Security weak points also at BGI and Haifa port. 2. SECURITY LAPSES: SOPHISTICATED ORGANIZATION LIKELY TO ATTACK STRATEGIC INSTALLATIONS. IDF has no one main list of sensitive installations. 3. EUROPEANS TO INVESTIGATE PALESTINIANS IN ISRAELI PRISON. EU seeking to interview Fatah military wing prisoners regarding use of donation funds for terrorism.

4. SHARON TO UNITED TORAH JUDAISM: “LAPID WILL NOT DETERMINE GOVERNMENT.” Shinui digging in its heels: Prepared for haredim to be in coalition, not government. 5. SECOND HOME FOR KING HEROD’S TEMPLE. Real estate values on “Holyland Hill” going up – famous model moving to Israel Museum. HATZOFEH 1. MAALEH ADUMIM AND ARIEL – OUTSIDE MOFAZ’S FENCE. Security source: High Court of Justice principles will not enable inclusion of Maaleh Adumim within fence – on contravention of Mofaz’s statement on Monday. Even original fence route approved by government didn’t include Maaleh Adumim. Ariel to be outside fence as well. 2. SHARON TO UNITED TORAH JUDAISM: LAPID DOESN’T DETERMINE. Sharon to [United Torah Judaism] MK {Avraham] Ravitz: “I told Lapid that I don’t accept his conditions regarding bringing in United Torah Judaism.” MA’ARIV 1. Confrontation between IDF and ISA on continuation of fighting in territories. OC INTELLIGENCE: NO BOTTOM TO TERROR. Two weeks ago, ISA Director said that it was possible to defeat terror. Hamas threatens “rain of Kassams” on Sderot. 2. Ma’ariv-Teleseker survey. 43% OF SHINUI VOTERS: MUST SIT WITH HAREDIM. Labor already talking about portfolios. Knesset goes on recess. 3. IDF EXPERIMENT: HASHISH TO TREAT SHELLSHOCK. 4. NEW IN ISRAEL: POLICE HIGH SCHOOL. YEDIOT AHRONOT 1. Yediot Ahronot/Mina Tzemah-Dahaf survey: Shinui has lost two seats. SHARON TO ASK PERES: GIVE UP FOREIGN MINISTRY. Labor: No. United Torah Judaism: If Shinui remains in government, we demand ministerial portfolios. PM to MK Ravitz: I told Shinui not to set conditions. 2. IN WAKE OF KASSAMS: IDF ENTERS GAZA STRIP IN DEPTH. ______________________________ SUMMARY OF EDITORIALS FROM THE HEBREW PRESS Yediot Ahronot commends the members of the Knesset Foreign Affairs and Defense Committee for their report on security lapses at various sensitive installations. However, the editors assert that, “It is important that we all realize that 1,000 MKs and any number of reports are incapable of stopping terrorism. Terrorism, the weapon of the weak, looks for any and all ways to attack. Throw it out the door and it will come in through the attic. This is the way of determined terrorism and who but us – who have learned the lessons of the British Mandate – knows this. If – Heaven forbid – we do not reach a diplomatic solution, 100 Knesset sub-committees checking and inquiring will not plug the holes.” Yediot Ahronot, in its third editorial, criticizes the Government’s plan to legislate a school meals program partially funded by overseas donations. Hatzofeh and Yediot Ahronot – in its second editorial – discuss the ongoing port workers’ strike.